Posting after a short gap. April Expiry is going to be like a festival as moves are clearly visible on cards mostly on short side. As Nifty hovered at 5300 for quite some times on the earnings back drop as mentioned earlier, I was watching the money flow and the developments of the Q4 which are still going on. Weakness on Index as well as on broader market can be clearly seen.
Attaching some charts and stats which are indicating weakness...
FII Money Flow:
Talking about the Index clearly FIIs were exiting from the Index, In the last 10 sessions Fiis were Net sellers to the tune of 4137 crores, plus add yesterday's figure of 202 crores taking the death toll to 4300 crores.
A/D Line
Ad chart which has become an interesting indicator to see now a days has now formed a lower top and resting near 8k again and possibly can break this 8k barrier today, so clearly showing that on broader market weakness is still there unlike nifty where we've seen some stability.
On Option chain Nifty is giving a mixed signal as there is some unwinding in 5300 call and on 5300 put there's a builtup of 76 lac shares and on 5400 96 lacs shares, so breaking up 5300 will be interesting to see.
Shorting Candidates
As per me Banking Index is more poised for short today in comparison to Nifty.
Attaching chart of Bank Nifty where is a clear weakness and it's a nice idea to short Nifty at current levels.
BANK NIFTY
Bank Nifty traded in a very narrow range yesterday which could give a chance for shorters earn today.
AXIS BANK
Alternatively Axis bank can be shorted today as well, on charts its looking very strong but on Futures there's an unwinding is going on in Axis bank, interestingly April Futures are trading at
roughly 8 points discounts as compared to spot which is at 1280 and May Futures is trading at 17 points discount clearly indicating weakness.
Lets see how expiry pans outs today.
Hope you liked it.
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